Brent crude is trading down $1.00 at $95.16 today, but Goldman Sachs doesn’t think these prices will last.
The United States just announced the final 15 million barrel SPR tender and that will cut a lot of the supply. The biggest risk is Russia, with the G7 still considering a price cap.
Today, physical oil trader Vitol said it expects Russian supplies to fall by 500,000 to 1 million barrels a day in winter. An EU ban begins on December 5 and orders for these shipments would already be cancelled.
Goldman Sachs thinks all of this will drive up prices. They maintained a forecast of $115 Brent in the first quarter of next year and say the risks are biased to the upside.